Res Judicata vs Constructive Res Judicata

Res judicata and constructive res judicata are both legal doctrines that promote finality in litigation and judicial efficiency. However, they differ in scope and application.

Res Judicata

Literally meaning “a thing adjudged,” res judicata bars the relitigation of claims that have already been decided in a court of law. It applies to:

• The same parties (or their privies)
• The same cause of action
• Matters that were actually raised and decided in the previous suit

Key elements of Res Judicata

• Final Judgment: There must be a final judgment on the merits from a court of competent jurisdiction. This means that a dismissal on procedural grounds (such as lack of jurisdiction) generally will not preclude a subsequent suit on the same claim.
• Same Parties or Privies: The parties in the second suit must be the same as or in privity with, the parties in the first suit. Privity is a legal concept that refers to a relationship between two parties such that one is considered the legal successor of the other. For example, a corporation is in privity with its shareholders.
• Same Cause of Action: The second suit must be based on the same cause of action as the first suit. A cause of action is a set of facts that gives rise to a legal claim. To determine whether two suits involve the same cause of action, courts will often consider whether the evidence needed to prove the claim in the second suit would have been substantially the same as the evidence needed to prove the claim in the first suit.

Effect of Res Judicata

Res judicata has a preclusive effect, meaning that it bars not only the relitigation of the same claim, but also any claims that could have been raised in the first suit. This is known as claim preclusion or compulsory counterclaims rule. The rationale behind this rule is to prevent piecemeal litigation and to promote judicial efficiency.

Example of Res Judicata

For example, imagine that Party A sues Party B for breach of contract, alleging that Party B failed to deliver goods that were paid for. The court rules in favour of Party A and awards damages. Party A cannot then sue Party B for fraud based on the same contract, even if Party A discovers new evidence of fraud after the first suit is decided. The fraud claim could have been raised in the first suit, so it is barred by res judicata.

Constructive Res Judicata

Constructive res judicata applies to matters that could have been raised in a previous suit but were not. It prevents a party from bringing a second suit on a different claim arising from the same set of facts, as long as the party had a fair opportunity to raise the new issue in the first suit.

Key elements of Constructive Res Judicata

• Same Parties or Privies: As with res judicata, the parties in the second suit must be the same as or in privity with, the parties in the first suit.
• Same Factual Basis: The second suit must arise from the same factual basis as the first suit. This does not mean that the legal theories underlying the two suits must be identical, but the factual allegations must be related.
• Fair Opportunity to Raise the New Issue: The party asserting constructive res judicata must have had a fair opportunity to raise the new issue in the first suit. This means that the new issue must have been ripe for adjudication at the time of the first suit. An issue is considered ripe if it is sufficiently developed for a court to make a meaningful decision.

Effect of Constructive Res Judicata

Like res judicata, constructive res judicata has a preclusive effect. It bars the relitigation of any issues that could have been raised in the first suit, even if those issues were not actually raised.

Example of Constructive Res Judicata

For example, imagine that Party A sues Party B for breach of contract, alleging that Party B failed to deliver goods that were paid for. The court rules in favour of Party A and awards damages. Party A then sued Party B for negligence related to the same contract, claiming that Party B’s negligence caused Party A to suffer additional damages.

This second suit could be barred by constructive res judicata, even though the negligence claim was not raised in the first suit. If Party A knew or should have known about the potential negligence claim at the time of the first suit, then they had a fair opportunity to raise it.

Exceptions to Res Judicata and Constructive Res Judicata

There are a few exceptions to these doctrines. For example, res judicata and constructive res judicata may not apply if:

• There is new evidence that could not have been discovered with reasonable diligence at the time of the first civil suit.
• There is a change in the law that affects the rights of the parties.
• There was fraud or misconduct in the first suit.

Difference Between Res Judicata and Constructive Res Judicata

Here is a table summarising the key differences between res judicata and constructive res judicata based on the provided code snippet.